The duties of the FEC, which is an independent regulatory agency, are to disclose campaign finance information, to enforce the provisions of the law such as the limits and prohibitions on contributions, and to oversee the public funding of U.S. presidential elections.
The Commission is made up of six members, who are appointed by the President of the United States and confirmed by the United States Senate. Each member serves a six-year term, and two seats are subject to appointment every two years. By law, no more than three Commissioners can be members of the same political party, and at least four votes are required for any official Commission action. This structure was created to encourage nonpartisan decisions. The Chairmanship of the Commission rotates among the members each year, with no member serving as Chairman more than once during his or her term.
Critics of the FEC, such as major campaign finance reform supporters like Common Cause and Democracy 21, have criticized this feature of the FEC, claiming that it renders the agency toothless. Though the agency disputes this characterization, critics reply that most FEC penalties for violating election law come well after the actual election in which they were committed.
Source: Adapted from FEC website: About the FEC (http://www.fec.gov/about.html) on June 1, 2003.
The FEC said that, although it was a "close question," these expenditures were not membership communications, because that exception applies to a membership organization's communications with its members, and most of the persons who belonged to AIPAC did not qualify as "members" for purposes of the Act.
Of course, as the FEC points out, Brief for Petitioner 29-31, it is possible that even had the FEC agreed with respondents' view of the law, it would still have decided in the exercise of its discretion not to require AIPAC to produce the information.
The FEC held that the statute's exception to the "expenditure" definition for communications by a "membership organization" did not apply because many of the persons who belonged to AIPAC were not "members" as defined by FEC regulation.